In the Keynesian model, the I = S equation, where I is intended investment and S is actual saving, describes the economy in macroequilibrium
Indicate whether the statement is true or false
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In terms of the aggregate demand and supply framework, a decrease in the money supply will shift the aggregate
A) demand curve to the right. B) demand curve to the left. C) supply curve to the left. D) supply curve to the right.
Which of the following was a key factor which pushed the nation close to civil war?
(a) The Missouri Compromise of 1820 (b) Dred Scott v. Sanford Supreme Court Case (c) The Tariff of Abominations of 1828 (d) The Supreme Court practice of "judicial instrumentalism," which the South believed undermined the Constitution
According to Garrett Hardin's view of The Tragedy of the Commons:
a. Externalities will be internalized by the market. b. Individuals will use the commons up to the point where marginal benefits equal marginal social costs. c. Individuals will create institutions to prevent the collapse of the commons. d. Individual will use the commons beyond the socially efficient point.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.